BATM Advanced Communications (LON: BVC) has signed a strategic partnership with a global technology group to market its cyber encryption technology to the civil commercial markets around the world. The partner will pay at least $2.1m over two years to develop a combined hardware and software product off. The share price jumped 11.8% to 18.5p and it is the best performer on the techMARK All-Share index.
The unnamed partner has exclusivity in some territories. Initial orders are likely to be in the first half of 2024 with larger orders after that.
The global market for BATM’s cyber product is around €4bn annually. There have already been orders in government markets. Total orders between the end of 2022 and March 2025 were worth $35m.
Shore leaves its forecasts unchanged, but this deal takes the company into a new market. Pre-tax profit is expected to improve from $1.5m to $2.8m this year and then rise to $6.5m in 2025. That does not assume any contribution to revenues above the development contributions from the partner. Net cash is forecast to be $27m at the end of 2024.
